Annual Financial Report

RNS Number : 8231B

Fair Oaks Income Limited

07 April 2017

 

Fair Oaks Income Limited

7 April 2017

FAIR OAKS INCOME LIMITED (the "Company")

(Incorporated in Guernsey under The Companies (Guernsey) Law, 2008, as amended, with registered number 58123 and registered as a Registered Closed-ended Collective Investment Scheme with the Guernsey Financial Services Commission)

ANNUAL FINANCIAL REPORT

The Board of Fair Oaks Income Limited is pleased to release the Annual Report for the period ended 31 December 2016.

Financial Highlights

·      NAV up 26.4% in 2016 on a total return basis (with dividends reinvested), outperforming the Credit Suisse Leveraged Loan Index (+9.9%), the Credit Suisse High Yield Index (+18.4%) and the JP Morgan B rated CLO index (+23.7%)

Company Highlights

·      Market capitalisation of $302 million as at 30 December 2016

·      The Company's shares traded at an average premium to NAV of 2.6% in 2016

·      The Company declared 13.45 US cents per ordinary share in dividends in 2016, equivalent to a 13.9% dividend yield on the closing mid-share price on 30 December 2016. Cumulative dividend of 27.6 cents per share since inception

·      US$9.3 million of principal returned to shareholders in 2016

Portfolio Highlights

·      0.1% cumulative default rate, since inception, in the Master Fund's control equity investments vs a 12m US bank loan default rate of 2.1%¹

·      Exposure to 904 issuers, across 41 CLOs managed by 22 managers

·      Exposure to the Oil & Gas and Metal & Mining sectors represented 1.9% and 0.8% of the CLO equity portfolio as at 30th December 2016²

·      The Master Fund took advantage of the opportunity in the secondary market in early 2016 by acquiring US$144 million par of CLO mezzanine securities, at a weighted average target return to expected call date of 25.4%.

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 http://www.rns-pdf.londonstockexchange.com/rns/8231B_-2017-4-6.pdf

Enquiries:

Fair Oaks Income Limited

Email: [e-mail]

Web: www.fairoaksincome.com

Fair Oaks Capital Limited

Hayley Stewart

DDI: [phone]

Email: [e-mail]

Praxis Fund Services Limited

Ben Le Prevost

DDI: [phone]

Email: [e-mail]

Numis Securities Limited

Nathan Brown, Corporate Broking

DDI: [phone]

Email: [e-mail] 

Fair Oaks Income Limited

Fair Oaks Income Limited is a registered closed-ended investment company incorporated in Guernsey. The Company was admitted to trading on the Specialist Fund Market of the London Stock Exchange (now the Specialist Fund Segment of the Main Market of the London Stock Exchange) on 12 June 2014.

The investment policy of the Company is to invest (either directly and/or indirectly through the Master Fund and/or Master Fund II) in US and European CLOs or other vehicles and structures which provide exposure to portfolios consisting primarily of US and European floating-rate senior secured loans and which may include non-recourse financing. The Company will implement its investment policy by remaining invested in the Master Fund and making new investments in Master Fund II.

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¹ Source: S&P LCD

² Source: Latest available CLO trustee reports as at Dec. Based on equity positions in portfolio, weighted by CLO size and fund's ownership percentage

 

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